Ken Griffin, CEO of Citadel Advisors LLC, attends the Semaphore Global Economic Summit during the Spring Meetings of the International Monetary Fund (IMF) and World Bank on Tuesday, April 14, 2026 in Washington, DC, USA.
Aaron Schwartz | Bloomberg | Getty Images
Citadel CEO Ken Griffin said on Tuesday that a prolonged closure of the Strait of Hormuz would push the global economy into recession.
“Let’s assume (the Straits) are closed for the next six to 12 months, the world will end up in a recession,” Griffin said on stage at the Semaphore World Economic Conference in Washington, D.C. “There’s no way to avoid that.”
As a result, the world will see a large-scale transition to alternative fuel sources such as wind, solar and nuclear power, he added. Indeed, hedge fund leaders believe the outcome of the war would have been much worse had the United States delayed its attack until Iran’s military strength had grown.
Stocks have managed to recover to levels seen before the US first attacked Iran in February, but investor optimism depends on the duration of the Middle East war. Many believe that the risk of escalating tensions between the two countries is not priced into the market at all.
The global economy, particularly Asia, remains vulnerable to high oil prices, with oil prices still rising at around $100 per barrel. While this is far from the highs during the conflict, it is still well above pre-war levels and just under $70 per barrel.
